Renton, Wash.-based Providence could see $585 million of new debt increased to $888 million if some of the to be issued bonds is used to finance existing debt, Moody’s said.
That assertion came as Moody’s assigned an “A2” rating to the new bonds, joining competitors Fitch and S&P Global who have also assigned similar ratings. The outlook is negative, per Becker’s.
“The negative outlook reflects the magnitude of [Providence’s] current operating challenges, and our expectation that while margins will improve in 2024, absolute cash flow will remain low and be only sufficient to cover capital expenditures,” Moody’s said.
Providence has said it is likely to use at least some of the $585 million to cover existing indebtedness, Fitch and S&P Global confirmed in their recent reports.
The 51-hospital system reported a $1.7 billion operating loss in fiscal 2022.
